Is This Asset Sale Permitted?

Your client calls and asks whether the sale of an asset is permitted under its credit agreement or whether such a sale triggers a mandatory prepayment. A prohibition or restriction under an existing credit agreement could impact the structure or timing of the transaction—or whether the borrower can pursue it at all. Read this practice note explaining how you should proceed when a client calls and asks whether the sale of an asset is permitted under a credit agreement.

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Related Content

• Asset Sale Analysis Chart
  Use this template to organize and present an asset-sale analysis.

• Negative Covenants in Credit Agreements
  Read this practice describing negative covenants and the related definitions, which are among the most heavily negotiated provisions in a credit agreement.

• Affirmative Covenants in Credit Agreements
  Review this practice note discussing affirmative covenants, which require a borrower to act in order to remain in compliance with the credit agreement.

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